Council sets stage for battle over land

Wednesday, April 13, 2005 | 10:53 a.m.

A development company today will withdraw proposed legislation allowing Boulder City to deannex property after the City Council voted unanimously Tuesday night to oppose the bill.

The council's opposition to the bill and unwillingness at this time for a land swap involving city-owned land has set the stage for a looming battle with the land owner, Bill Wadley of Las Vegas. He plans to petition Clark County commissioners for a zoning change that would allow more intense residential development than currently allowed on his 640 acres in unincorporated Clark County along the city's western border.

"Boulder City will fight that head on," Councilwoman Andrea Anderson told Wadley as an overflow crowd at City Hall voiced their support.

The existing zoning on the 640 acres allows one home for every two acres, said Louis Cervantez, general manager of Eldorado Valley Development Co. that manages the property for Wadley. That would allow a little more than 300 homes on the site, of which 50 acres are now used for gravel mining.

Cervantez said he would pursue a zoning change to allow as many as three homes per acre. That could result in nearly 2,000 homes on the foothill property five miles from developed portions of Boulder City.

City officials said Wadley has the right to develop the property to its existing zoning but fear allowing more housing will harm mountain views of Boulder City residents and add congestion and pollution to a community that values limited growth. Boulder City restricts construction to 120 homes a year.

The city's options included swapping 1,500 acres of city-owned land further to the west known as Dutchman's Pass or lobbying Clark County against approving any zoning change. Commissioner Bruce Woodbury, whose district includes Boulder City, said he opposes any zoning change and expects his colleagues would as well.

Wadley declined to criticize Boulder City officials for opposing his legislation or threats to oppose a zoning change. He said he wants a survey and focus groups to keep residents informed.

"We would just like to work with them," Wadley said of the city.

Without the ability to swap its land for Dutchman's Pass, Cervantez said the company will look at offers from developers who may be interested in residential or industrial projects. Unlike the Eldorado Valley property, the city-owned land between the McCullough Mountains isn't visible to Boulder City residents.

"Believe it or not, all this hoopla has increased our activity, and we have gotten a lot of calls from out of state looking for a big piece of property," said Cervantez whose company manages rather than develops land. "I think we will go for it."

Even if the developer had decided to pursue the legislation, the bill likely faced an uphill battle because of opposition from Assemblyman Joe Hardy, R-Boulder City. The Government Affairs Committee Hardy serves on is scheduled to hear Assembly Bill 487 on Thursday. The bill has an unrelated section pertaining to Henderson which proposed the legislation. Boulder City didn't oppose the section dealing with Henderson.

"That is the best thing to do," Cervantez said. "We don't want to shove anything down their throat. We want to abide by their wishes."

Despite all the controversy and concerns raised in the community about the proposed legislation, it wouldn't have given the City Council the authority to swap land with Eldorado Valley as some residents mistakenly believed. That power by the city's Charter rests with Boulder City residents who would have to authorize any sale through a ballot initiative, city officials said.

Council members said Wadley's proposal had no chance of getting approved by voters in the wake of his seeking a change in state law without involving Boulder City.

Wadley said he had no intention of circumventing the city because voters have to approve a swap anyway. He said he couldn't wait for the Legislature to meet in two years because of the debt service on the property he acquired in 2002.

"You can do with your land as you want, but doing this (seeking legislation) without prior notice causes heartburn," said Councilwoman Karla Burton who added, "we don't want the Legislature to tell us what to do."

Some council members said a trade for Wadley's property wouldn't be prudent because the city land is deemed more valuable. Wadley contends a swap would be fair because his land is closer to utilities and Boulder City. One councilman estimated Wadley's property was worth in excess of $250 million.

"Land swap is a dirty word right now in this county," said Burton, referring ot ongoing investigations over land swaps by county officials at McCarran International Airport.

Councilman Mike Pacini said it was wrong for Wadley to seek the legislative change without citizen and council involvement, but he said he doesn't want discussion of a potential swap to end. In the past, he has urged the council to consider a sale of Dutchman's Pass, worth more than $400 million, to pay off city debt. He warned residents that they could have several thousand homes next to the city's border, while Dutchman's Pass is several miles farther west.

Despite the controversy, council members said it was important for the public to know about the Eldorado Valley property because many don't realize the property is just outside the city limits and can be developed without Boulder City's approval. There are hundreds of other acres in unincorporated Eldorado Valley that are in private hands, officials said.

That was the message of some Boulder City residents who appeared before the council to oppose the deannexation legislation.

Sherman Rattner said the city needs to "draw a line in the sand" from developers and other powerful interests who have their sights on undeveloped city-owned property, including Dutchman's Pass. Otherwise, he said the city will open the door and be "under a sea of development."

Neal Siniakin told the council that land in Eldorado Valley is ripe for development and warned that state lawmakers may try to usurp the city's authority on restricting development. He said property owners more sophisticated than Wadley will be coming to Boulder City, and they will be difficult to ward off with the millions of dollars that can be made.

"We are lucky we got off cheap," Siniakin said. "The first volley was by a rank amateur."

More details emerged Tuesday on how the section of the bill pertaining to Boulder City got added to an unrelated annexation bill proposed by Henderson.

Greg Ferraro, an unpaid Boulder City lobbyist and son of the mayor, informed city officials on Tuesday he will no longer represent the city.

Ferraro came under fire from residents at Tuesday's meeting for his involvement in the bill. One man even said Mayor Bob Ferraro should resign.

During an interview, Greg Ferraro said he learned of Henderson's bill dealing with annexation law, and Eldorado Valley lawyers drafted language that fit into it. Ferraro said he gave the updated bill in mid-March to Assemblyman David Parks, D-Las Vegas, chairman of the Government Affairs Committee, and Assembly Speaker Richard Perkins, D-Henderson. He said he assumes one of them forwarded it to bill drafters in the Legislative Counsel Bureau.

Parks said Ferraro had given him documents on various bills, but said he didn't forward anything to lawyers for drafting legislation involving Boulder City. He said he asked the committee to introduce the bill once he got it from legal staff in late March.

Perkins wasn't available for comment.

Ferraro has come under some criticism for representing a development company on a Boulder City issue while he represents the city. Ferraro said he did nothing improper because he isn't paid by Boulder city, and he only volunteered to help the city out when it needed assistance.

Ferraro said he did nothing that would have harmed the city, but only submitted legislation that would have given the council the option if it ever wanted to deannex property. He said he was mistakenly under the impression that Cervantez had spoken to city officials about the proposed legislation and described how he sought to delay the Government Affairs Committee hearing until Thursday to give council members a chance to weigh in on the issue. Ferraro said he didn't lobby on behalf of the city.

"I think there was an honest misunderstanding but the bottom line is that there won't be a hearing on this provision on Thursday," Ferraro said. "Some people are trying to make more of this than there is. Some are suggesting this is a forced requirement on Boulder City. It is simply enabling legislation that gives them more authority. No matter what happens, it is subject to a vote of the people. I would not support anything that goes around that."

Cervantez and Wadley got the idea for a land swap with Dutchman's Pass when the council discussed it previously as a way to raise money to erase the city's debt. A year ago, council members decided not to pursue any sale at this time.

City officials said they believe Dutchman's Pass is worth more than $400 million based on recent Bureau of Land Management sales. The city acquired the property in 1995 from the Colorado River Commission for less than $2 million.

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